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The Spanish Unburdening

Pro-growth tax cuts will do far more for the economy than hiking Rioja levies.

Updated June 22, 2014 7:30 p.m. ET

The government of Mariano Rajoy announced a wide-ranging package of tax cuts on Friday. In a sure sign that Madrid is onto something good, union chiefs and EU austerity-scolds are already griping that Spain can't "afford" the fiscal unburdening.

The measures are expected to sail through the Spanish parliament controlled by Prime Minister Rajoy's center-right People's Party. The standard corporate-tax rate would fall to 28% in 2015 and to 25% in 2016 from 30% today. Spanish businesses already enjoy a special low rate...